817: Fit to Compete, Fit to Grow | Kabir Ahmed Shakir, CFO, Tata Communications

When Kabir Ahmed Shakir first arrived inside the CFO office at Tata Communications, the former Microsoft India CFO quickly determined that there was one person above all others who held sway over the company’s maturing transformation plans.

“The person who is actually giving pricing to our customers needs to know how much cash we make on Year 1, Year 2, and Year 3,” explains Shakir, whose 2-year CFO tenure has spanned a period in which the company’s free cash flow has grown twentyfold.   

“We had to bring our ‘cash thinking’ down to the deal profitability level,” reports Shakir, whose choice of words at first makes it sound as though his finance team had become tasked with running an errand.

However, Shakir quickly clarifies the magnitude of what he was looking to achieve: “I wanted there to be an undying focus on cash. It’s not the most profitable companies that survive—it’s the liquid ones.”

While this is certainly an organizational mind-set that many CFOs eventually reach, not that many do so within a span of time comparable to that of Shakir’s short ascent. For those who succeed in implementing the emphasis, as he appears to have done, leadership style is often the key contributing factor.

Shakir, who spent 23 years climbing the finance career ladder at packaged goods giant Unilever, cites the scathing results of a 360-degree review that he once received as an aspiring future leader as the experience that most helped to shape his leadership skills: “It was the worst feedback of my life. Some of my friends even reported that I was a real pain to work with. They said, ‘When we come to you, you always have to show us how much smarter you are than all of the rest of us.’”

In truth, a chastened Shakir tell us, he was indeed “nosy” by nature and would at times second-guess the work of others. Even faced with such cutting feedback, though, and as “extremely difficult” Shakir found it to change, nevertheless, change did come.

“I have let go. And I now spend my time thinking, not doing, because that is what I’m paid to do,” observes Shakir, who says that Tata’s undying focus on cash took root with the help of many rather than just one.

Adds Shakir: “When I first walked into Tata Communications, I told my team that I knew nothing of telecommunications. I said, ‘Help me learn.’” –Jack Sweeney